My request to remove a Penalty was rejected.Should I request an appeal?
Before you begin...This tool may be helpful if the following statements apply to you.
You received a letter that a failure to file or failure to pay penalty(s) was assessed to your individual or business tax account.
You sent a written request to the Service Center asking the IRS to remove the penalty
The Service denied your request to remove the penalty (penalty abatement).
You received a Notice of Disallowance, which gives you your appeal rights
Appeals may remove (abate) your penalty(s) for any of the following reasons:
Reasonable Cause: This is relief that is generally granted when a taxpayer exercises ordinary business care and prudence in determining their tax obligation, but is unable to comply with those obligations due to circumstance beyond their control.
Statutory Exceptions: The tax law provides for specific exceptions.
Administrative Waiver: This may occur as result of a formal government directive providing penalty relief because of a natural disaster or catastrophic event.
The two most common penalties (Failure to File and Failure to Pay) considered in Appeals are addressed in this tool. If you want assistance in deciding whether to request an appeal for a penalty, then please proceed.
All in all, myth cleared. The IRS absolutely will not remove penalties unless there is reasonable cause. They will never remove interest so don't bother asking. The breath can be used for something more beneficial.
Friday, January 18, 2008
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